Aradel, backed by five African billionaires, lifts nine-month revenue to $2.9 billion

Aradel Holdings Plc, the Nigerian oil and gas producer in which five African billionaires together own about a quarter of the shares, raised its revenue more than sevenfold in the first nine months of 2026 after taking control of the onshore oil fields it helped buy from Shell Plc.

Revenue rose 633% to ₦3.95 trillion ($2.9 billion) in the nine months to Sept. 30, from ₦538.8 billion a year earlier, the Lagos-listed company said in a statement on Oct. 30. Operating profit jumped to ₦1.56 trillion ($1.1 billion) from ₦167.5 billion, and profit before tax rose 154% to ₦764.7 billion ($560 million).

Profit after tax fell 82% to ₦43.3 billion ($32 million), weighed down by a ₦529.1 billion earnout charge, a contingent payment owed to the seller of the assets, along with net finance costs of ₦797.3 billion and a tax bill of ₦721.4 billion. Before the earnout charge, profit after tax rose 134% to ₦572.4 billion ($419 million). Profit attributable to shareholders fell 42% to ₦141.5 billion, and earnings per share dropped to ₦32.57 from ₦55.90.

“The first nine months of 2026 demonstrated what our enlarged portfolio can deliver,” Chief Executive Officer Adegbite Falade said.

Six times more oil and gas

The jump came from Renaissance Africa Energy Co., the consortium that bought Shell’s Nigerian onshore business, the Shell Petroleum Development Co., in March 2025. Aradel raised its stake in ND Western Ltd., one of the consortium’s members, to 81.67%, and now owns 53.3% of Renaissance directly and through ND Western. Both companies were fully consolidated into Aradel’s accounts from the end of December.

Group output rose to an average of 144,700 barrels of oil equivalent a day, from 24,000 a year earlier. Crude production nearly quadrupled to 57,900 barrels a day, and gas output climbed almost tenfold to 503.6 million standard cubic feet a day. Aradel raised its full-year production target to between 140,000 and 150,000 barrels of oil equivalent a day, from 110,000 to 140,000.

Prices helped too. Aradel sold its crude at an average of $97.50 a barrel, up from $75.60, and its gas at $2.64 per thousand cubic feet, up from $1.64. Its field operating costs fell 28% to $7.90 a barrel.

The company wants to change the earnout deal. Its board said the arrangement “no longer reflects the balanced participation” originally intended, and Falade said Aradel is “well underway in constructive engagements with the seller to address the earnout arrangements.” Aradel paid ₦543.9 billion in earnout payments during the nine months and still carries ₦1.32 trillion of the liability on its books.

Debt paid down

Cash from operations rose to ₦2.46 trillion from ₦205.4 billion. Aradel cut its borrowings by 25% to ₦1.51 trillion and ended September with net cash of ₦532.3 billion ($390 million), compared with net debt of ₦475.1 billion at the end of December. The board declared an interim dividend of ₦7 a share, worth about ₦30.4 billion.

Aradel’s refinery, its smaller business, produced 194.2 million litres of refined products, down 18% from a year earlier.

The investors behind Aradel

Aradel shares closed at ₦1,439.90 on Oct. 30, valuing the company at about ₦6.25 trillion ($4.6 billion).

The five hold a combined 24.25% of the company, a stake worth about ₦1.52 trillion ($1.1 billion) at that price.

The largest of them is Beninese businessman Samuel Dossou-Aworet, founder of the Petrolin group, which operates across West and Central Africa. He owns about 12.26% of Aradel through Petrolin, worth roughly ₦767 billion ($562 million), and the interim dividend will pay him about ₦3.7 billion ($2.7 million).

Nigerian banker Fola Adeola, the co-founder of Guaranty Trust Bank, holds about 5.52%, worth about ₦345 billion ($253 million). Aradel’s chairman, Ladi Jadesimi, owns about 5.27% through Badagry Creek FZE, a stake worth about ₦330 billion ($241 million). Olusola Adeeyo holds about 0.93%, worth about ₦58 billion ($43 million), and Falade owns about 0.26%, worth about ₦16 billion ($12 million).

Figures were converted at ₦1,365 to the dollar.

(Billionaires Africa)